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tier rate did i misquote that i miss stoke so once you reach over one million that first million is taxable. so correction. and then as i noted there's a small business under one million gross receipts is exemption in the gross receipts. the one is particularly for the business fee will increase in 2014 for all businesses and i think what i'd like for you to do is flip to page 2. where i see the charts. and so for 2014 to 2015 the base
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payroll there will be a new business fee and then two 15 the set business register fee will be under two schedules so businesses in schedule one >> yes. >> i have is question. is there any you type of outreach that's going to be done >> there will be and at this time, the controllers office is working on are developing plans for this and our outreach will happen after we go after june or
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july of 2013 because they're still developing things like the tax credits and how that will be applied. who you get into some of the larger entities there's bigger structures and that needs to be careful communicated so that when the time for outreach there's one package of information going out. so the tax and treasurers office have additional staffing for that >> commissioner reeling. >> so of a small business the gross receipt is less than 1
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million it's exemption. >> right the first million is not exemption so if you will look at page 2. the whole 2 million is taxable >> yeah, but it's at a different taxable rate. so if you look at that page once you reach over a million that million is a taxable minimum >> so for schedule one 1.75 percent of - the first million is at - the 5 hundred thousand is taxable at the 1 point percent tax rate. >> commissioner. >> what about the businesses
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that are a combination of the manufacturing and other businesses structure. >> right so going back to i think i think this is where we need to work this out. we're not going out and educating businesses right now. the likelihood you'll by looking at the bigger side of our business >> director i believe if more than your business is one second for it will be taxed at a different rate and i make everything i sell.
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so i'm making it and selling it. right but you're also whole sailing >> yeah, but wholesale and retail are in the same bracket. by definition the - so i look like a retailer but i'm a manufacturer if you proportion the dollars >> well, is your margin bigger than air manufacturing costs it will be interesting to find out how they find this.
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>> look by definition your whole sailing it and selling it. >> not every manufacture will have a manufacturer presence. >> yeah, so this is - anyway pointing out. >> again we're not going out and promoting this yet base we're still talking about this and there will be an awe apportionment but they'll be some guidelines on.
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>> i have a question. saying there is a small business exemption for gross receipts less than one million but on the second page it shows the gross rates is from zero to one million i'm confused >> once i makeover a million then your taxed on that million but as long as your taxed - the first million is you're paying taxes on but if you're not making one million you're not taxed. >> as you keep going up the
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tier the one million is taxed on the section tier the taxable amount the tiers remain the same. prevents stepping so when i cross a boundary and the rate goes up or down there's no incontinuity. >> this goes in effect in 2014. there is one business who wants to hire but basically they'd have to wait until 2014 and there is a schedule the phase in
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schedule will still have 2014 is 10 percent is gross receipts the remaining will be payroll tax. the - if they're under $500 in pay role they may be able to apply the pay role exemption tax. >> there probably are some cases where your taxes will be greater than but if you're hiring people you're going to get it in the payroll see or the - you're going to pay the taxes
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in the year 2014 but if you want to make a determination if you wait i'll be able to avoid this. you'd want to know they might decide oh, the new tax is so moo much better for me, i think i'll wait. this is interesting conversation >> right so neo fourteen and neo fourteen it keeps on going up.
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2017, 75 percent gross receipts payroll tax and so forth >> so that is the phase in period. but remember we already phased in the mayors suggestion >> so in this information i know you say that they're working on it with the tax collectors office, can we put this on the website to educate? at least the schedule. as i look at this thing there is a gross receipt rates and the phase in and as a business owner i'd like to know this >> so for the members of the
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pick up the document is available under small business assistance. tab there's a link to gross tax information and. there's a direct link to this document if you'd like to punch >> i see chaos between gross receipts now what does it mean it 10 percent gross receipt tax? what's the equation there? >> well, what we will do as the tax and treasuresers office
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there has been some discussion about online tools and to help businesses figure this out. so as we get closer we'll check in with this and see if they're ready to do a presentation >> this will pail in comparison to have someone figure out this prorated schedule. i know what i have to pay a examiner cpa to do this >> at least maybe an amnesty
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program come later and is well, you should have known. >> maybe we can come up with a straight online calculator but this period 2014 and up sees complicated to me. >> which is why it is good for us as a commission that we're having this discussion so that you have the abilility to think and we're going to work with other departments on this. great. my comments are meant to be critical but educational. we're going to be pulling out
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hair out for a few years >> once we go to all gross receipts that will be another story but the phase in will be tough. >> how can we minimize this to help understand this complicated process. >> well, certainly me and whoever else - well, what other businesses do we have? the restaurant business. and take us through that process so we can anticipate some of the questions >> and i'll have a cigarette way into this we can have a more
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robust discussion and i'll be meeting with the president adams to outline the retreat and we he can think about having a more robust discussion on this at the retreat. >> one thing is what potential hybrids are on here. f certain restaurants sell and package their own sauces that could be another hybrids. and this other discussion how do we do the other sections.
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and this lady has a restaurant so she'll have some thoughts about that >> and other restaurants have entertainment. >> so, now we have a module of hybrids to be considered. >> great thank you so much for that. >> thank you. >> so that was our beginning overview and working on this and we have a year ahead have to start helping businesses transition into this. >> that's the key it's a year. is clock is starting to tick now. this is going to be a yearlong
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educational project. we have the tables set up at flavors if we can get a table but it can start answering some of the questions. >> and perhaps we'll be meeting sometime next week but we could look at this as a potential workshop. >> thank you. >> mr. president, can we call public comment on the gross receipts tax? seeing none public comment is closed. >> update and the small
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business center and making comments on small business activities. >> so commissioners this morning mayor lee gave his city address and this is the first address as he being mayor. while there were numerous items when he went through all the things awe employment over the last year but business-related he talked about the gross receipts and passage and the collective work on creating that piece of legislation and the unanimous sport around that. no need the growth of manufacturing the increasing of funding for lending programs that the city is doing and soon
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by the end of this month through mid february i think we may be getting the announcement about the mid loan funding. so you'll be receiving a announcement on that. and then is commercial corridors with the investment program and as jane mentioned he talked about is license 1, 2, 3 and the ongoing comment to developing is online business tool. there were numerous highlights but those are the small business related. next there is - how do i want to
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say this. the cast program has been this 10 year analysis around soft story building what needs to be done to shore them up to make them more secure during an earthquake and a 10 year program to identify what sites and what kinds of construction need to be done. and so the mayor is getting ready to implement this program and is work to start doing - working on getting those soft story structures more sound. as he relates to our - the structures that have mixed use homes above and business below
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when you do the improvement it does help us bring us together on this program - there is a california office of historical preservation we can look at assess built and those structures as they're going through size save and preserving the historic nature of these.
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so over the next 8 months our office and some private cast inspectors are going to start working together >> well, there's a meeting on friday that's going to cover this. >> right and in this - in the scope - i mean working with the structures that center the mixed use those structures will be the last structures to be working with and so last week we did have a meeting to talk about what we can do on the financing side. the landlords will deal with the earth quake side but written
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into the lease the tenants will be responsible for certainly things >> we do have the buildings identified how do we coordinate this with the landlord and others. we're thinking about this well, in advance. also i want to note in terms of ada last meeting i talked about the one dollar that's being added to the business register so the d d i was an entity that would particularly receive some of the funding to help them move along and get their inspectors
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certified. they're interested in turning the funds back into what they could use toward cast inspections. we'll be meeting over the next three weeks >> the bulk of the money will not be coming in until may. i've talked to the person who is in charge of that monies. i think one the great benefits is funding a cast certification for businesses. so i'll be, you know, keeping you updated on this. and then last meeting i noted there was a meeting in chinatown
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doing presentation on getting cast certification, doing assess boycotting improvements. the union was our core sponsor and one of the things say they do education to their business clients. we had 13 applications for getting assistance to go forward and getting a first walk through and getting an assessment for access abilility. we'll all pleased with this. i'm sure more about come through. and then small business saturday
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november 30th of 2013 we're going to be starting this earlier with the american express and is chamber to start planning for that. and then the retreat is february 26th is it? or excuse me. . february 25th. and so as i mentioned i will be meeting with president adams to work on the agenda but also will be reaching out to each one of the commissioners to talk to you about the retreat and what you would like to see worked on. legislation wise are having a quiet legislative - not much legislation has been introduced.
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next meeting you will be hearing is tobacco register restriction. we're going to get a presentation about clove restrictive ice areas. there are several throughout this community and you'll be able to hear with the alcohol restrict areas. and then the c r v the outreach committee will be reviewing the. draft and the commission will receive it on february 11th. the letter that the commission approved it is - did it make it into the binder?
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>> and so that letter has been forwarded onto the mayor. and the examiner made note of the xhoirgss discussion and our recommendations >> and comments. next dp h is xhooern a meeting >> highway education will be taking place. so this is to really take a look at the uninsured of san francisco some will be going into medi-cal and covered california is the name of the exchange program for of the state of california. and

January 29, 2013 1:30am-2:00am PST

TOPIC FREQUENCY California 3, Adams 2, Lee 1, Chinatown 1, San Francisco 1
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